Increased number of Internet sweepstakes cafes in Ohio causes Attorney General Mike DeWine to push for regulation

COLUMBUS, Ohio -- Ohio has at least 667 internet sweepstakes cafes, more than twice the number state officials had estimated four months ago. And northern Ohio has the lion's share.

Ohio Attorney General Mike DeWine released the numbers Thursday, calling for more regulation of the establishments.

A new state law put a moratorium on new internet cafes or electronic sweepstakes parlors. Any cafe in operation before June 11 had to submit an affidavit of existence to the attorney general's office by Wednesday.

The attorney general's office received 667 affidavits. It counted 280 cafes in March.

Cuyahoga County had the most cafes, with 75, followed by Lorain County, with 70, and Lake County, with 66. Summit County had 24, Medina had nine and Geauga had five.

"These internet cafes are multiplying at an alarming rate, and I again am encouraging the Ohio General Assembly to act swiftly to regulate them with the same scrutiny as other forms of gaming in Ohio," DeWine said in a news release. "Ohioans currently have no way of knowing that these games are what the cafes report them to be or if they are being completely ripped off by the owners."

Previous Plain Dealer coverage

At least 9 more Internet sweepstakes cafes can open again in Cuyahoga County (June 21, 2012)

DeWine said that because the cafes are not regulated under Ohio law like casinos and racinos, there is no way to keep track of who profits from them, where the money goes and any criminal activity linked to the cafes.

Attorneys for sweepstakes operators argue that the Ohio law legitimizes these businesses and furthers the argument that sweepstakes are not illegal gambling.

Cuyahoga County Prosecutor Bill Mason has attempted to shut down the establishments. On May 30, he charged seven businesses and 10 people who sold and distributed software systems to area cafes with gambling, money laundering and racketeering. Operators of 53 cafes were notified by letter to close their businesses.

Three cafe owners filed lawsuits seeking to reopen their establishments in June. Common Pleas Judge Nancy Margaret Russo granted their request, and also allowed those cafes using the software to reopen, reversing a previous decision.

Mason has filed a motion with the state Supreme Court in hopes of overturning Russo's temporary restraining order that allowed the businesses to open and to prevent her from making a decision on the legality of the cafes.